Correlation Analysis Between Salesforce and Facebook

Analyzing existing cross correlation between Salesforce Com and Facebook. You can compare the effects of market volatilities on Salesforce and Facebook and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Salesforce with a short position of Facebook. See also your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Facebook.
Horizon     30 Days    Login   to change
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Comparative Performance

Salesforce Com  
2121

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Salesforce Com are ranked lower than 21 (%) of all global equities and portfolios over the last 30 days. Even with considerably unsteady technical indicators, Salesforce revealed solid returns over the last few months and may actually be approaching a breakup point.
Facebook  
1515

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Facebook are ranked lower than 15 (%) of all global equities and portfolios over the last 30 days. Despite somewhat unfluctuating basic indicators, Facebook sustained solid returns over the last few months and may actually be approaching a breakup point.

Salesforce and Facebook Volatility Contrast

 Predicted Return Density 
    
  Returns 

Salesforce Com Inc  vs.  Facebook Inc

 Performance (%) 
    
  Timeline 

Pair Volatility

Considering 30-days investment horizon, Salesforce Com is expected to generate 1.03 times more return on investment than Facebook. However, Salesforce is 1.03 times more volatile than Facebook. It trades about 0.31 of its potential returns per unit of risk. Facebook is currently generating about 0.22 per unit of risk. If you would invest  14,455  in Salesforce Com on December 19, 2019 and sell it today you would earn a total of  3,768  from holding Salesforce Com or generate 26.07% return on investment over 30 days.

Pair Corralation between Salesforce and Facebook

0.9
Time Period3 Months [change]
DirectionPositive 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Salesforce and Facebook

Salesforce Com Inc diversification synergy

Almost no diversification

Overlapping area represents the amount of risk that can be diversified away by holding Salesforce Com Inc and Facebook Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Facebook and Salesforce is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Salesforce Com are associated (or correlated) with Facebook. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Facebook has no effect on the direction of Salesforce i.e. Salesforce and Facebook go up and down completely randomly.
See also your portfolio center. Please also try Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..